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The effect of executive green human capital on greenwashing

Author

Listed:
  • Shi, Daqian
  • Lu, Shan
  • Fang, Ziwei

Abstract

Faced with the great pressure from various environmental policies, firms are increasingly interested to use green advertising claims to tag themselves as environmental-friendly. Greenwashing appears as an attractive strategy that could cover up firms’ irresponsible environmental behavior. Against this background, our study focuses on the relationship between green human capital of executive and corporate greenwashing, trying to discover the internal driving force that curbs firms’ irresponsible environmental behavior. Based on the pro-environmental behavior theory, we empirically examine the effect of EGHC on corporate greenwashing and further discover underlying mechanisms. Our finding suggests EGHC could significantly alleviate firms’ greenwashing, stimulating the inherently pro-environmental behavior within enterprises. This is resulted from the strengthening of executive’ environmental awareness and responsibility. Heterogeneous tests show the negative effect of EGHC on greenwashing is more prominent in non-state-owned, small-and-middle, growing and non-polluting firms and firms whose executives are experienced in environmental protection.

Suggested Citation

  • Shi, Daqian & Lu, Shan & Fang, Ziwei, 2024. "The effect of executive green human capital on greenwashing," Research in International Business and Finance, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:riibaf:v:71:y:2024:i:c:s027553192400254x
    DOI: 10.1016/j.ribaf.2024.102461
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